Blogs
on June 6, 2022
Smithers' most recent long-term forecast examines four key trends that indicate how the packaging industry is likely to evolve in the coming years and decades. According to Smithers' research published in The Future of Packaging: Long-Term Strategic Forecast to 2028, the global custom drawer box market is expected to grow by nearly 3% per year between 2018 and 2028, reaching more than $1.2 trillion.
From 2013 to 2018, the global packaging market grew by 6.8% per year on average. The majority of this growth has come from less developed markets, as more consumers migrate to urban areas and adopt westernized lifestyles as a result. This has resulted in an increase in demand for packaged goods, which has been accelerated by the growth of the e-commerce industry around the world. There are a variety of factors that are having a significant impact on the global perfume boxes industry. The following are the four major trends that will play out over the next decade:
Growth in both the economy and the population
- The general expansion of the global economy is expected to continue over the next decade, aided by the expansion of emerging consumer markets in the developing countries
- In the short term, there is the possibility of disruptions caused by Brexit and any escalation of the tariff wars between the United States and China, among other things
- In general, however, incomes are expected to rise, increasing consumer income and thus the amount of money available for spending on packaged goods
- The global population will continue to grow, and the rate of urbanization, particularly in key emerging markets such as China and India, will continue to accelerate
- Consumption of goods and services increases as a result of increased consumer incomes, increased exposure to modern retail channels, and the aspiration of a growing middle class to engage with international brands and shopping habits
The increasing life expectancy of the population will result in an aging of the population, which will increase demand for healthcare and pharmaceutical products, particularly in key developed markets like Japan. At the same time, there is a demand for simple opening solutions as well as perfume box packaging that is tailored to the needs of the elderly. Another important phenomenon of 21st century living has been the increase in the number of single-person households, which is driving demand for goods packaged in smaller portion sizes, as well as for more convenience features such as resealability and microwaveability.
Long-term viability
Although concern about the environmental impact of products is a well-established phenomenon, there has been a resurgence of interest in sustainability, with a particular emphasis on packaging, since 2017. This is reflected in central government and municipal regulations, consumer attitudes, and brand owner values that are communicated through the packaging of their products.
With its push toward circular economy principles, the European Union has set the bar high in this field. There is a particular emphasis on plastic waste, and because it is a high-volume, single-use item, plastic packaging has come under close scrutiny in recent years. In order to address this, a number of strategies are being developed, including switching to alternative materials, investing in the development of bio-based plastics, designing packaging in such a way that it is easier to process in recycling, and improving recycling and waste processing. As environmental responsibility has risen to the top of the consumer's priority list, brands are increasingly looking for packaging materials and designs that demonstrate their commitment to protecting the environment.
With up to 40% of food produced in the world going uneaten, reducing food waste is another important goal for policymakers to achieve. It is an area in which modern KALI Custom Packaging technology has the potential to make a significant difference. In addition to extending the shelf life of foods, modern flexible formats such as high-barrier pouches and retort cooking also help to reduce food waste. These formats are particularly useful in developing countries where a refrigerated retail infrastructure is lacking. A great deal of research and development is being put into improving packaging barrier technology, which includes the integration of nano-engineered materials. In addition, reducing food losses encourages the wider adoption of intelligent packaging, which helps to reduce waste in distribution chains while also assuring consumers and retailers about the safety of packaged foods.
Consumer behavior is on the rise.
The global market for online retailing is continuing to grow at a rapid pace, fueled by the widespread use of the Internet and mobile devices. Consumers are increasingly turning to the internet to purchase more goods. In addition, the demand for packaging solutions – particularly corrugated board formats – that can safely ship goods through the more complex distribution channels will increase through 2028. Products such as food, beverages, and pharmaceuticals are increasingly being consumed on the go by more people. With this growing demand for packaging solutions that are convenient and portable, the flexible plastics industry is seeing a significant increase in its revenue.
In line with the trend toward single-person living, more consumers – particularly those in the younger age groups – are more likely to shop for groceries more frequently and in smaller quantities as a result. Because of this, the convenience store retailing industry has experienced growth, as has demand for more convenient, smaller-format convenience store formats. Consumers are becoming more concerned with their own health, which is leading to the adoption of healthier lifestyles. Therefore, packaged goods such as healthy foods and beverages (e. g. gluten-free, organic/natural, portion controlled) as well as non-prescription medicines and nutritional supplements are seeing an increase in demand.
Trends in brand ownership
Many brands in the fast-moving consumer goods industry are becoming increasingly international as companies look for new high-growth sectors and markets to expand into. This process will be accelerated in key growth economies through 2028 as a result of increased exposure to westernized lifestyles. E-commerce and the globalisation of international trade are also stimulating a demand among brand owners for components such as RFID labels and smart tags, which can be used to protect against counterfeit goods and improve the tracking of their movement.
It is also expected that industry consolidation will continue in the form of merger and acquisition activity in end-use sectors such as food, beverages, and cosmetics. As more brands come under the control of a single owner, it is likely that their packaging strategies will become more standardized. The consumer of the twenty-first century is less brand loyal. An interest in customized or versioned packaging and packaging solutions that have the potential to make an impact is being simulated in this manner. Digital (inkjet and toner) printing is a critical tool for accomplishing this, with the first installations of high-throughput printers designed specifically for packaging substrates just a few months ago. This is also in line with the desire for integrated marketing, with packaging serving as a gateway to social media integration and engagement.